Shopko files for Chapter 11 bankruptcy, announces more closures

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GREEN BAY, Wis. (WIFR) -- Updated: Jan. 16, 2019, 12:40 p.m.

Wisconsin-based retail chain Shopko, which filed for Chapter 11 bankruptcy Wednesday, does not have plans to close several stores in the Stateline.

Shopko operates stores in Beloit, Belvidere, Dixon and Freeport. None of these locations were part of Shopko's list of closing stores.

According to the list, Shopko plans to close around 100 stores by April 2019. The company plans to close 16 stores is Wisconsin, including locations in Green Bay, Madison and Manitowoc.

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(WIFR) -- Wisconsin-based retail chain Shopko, which operates stores in Beloit, Belvidere, Freeport and Dixon, officially files for bankruptcy Wednesday.

The company announced Wednesday its need for financial restructuring due to excessive debt and competition.

Shopko is closing an extra 38 locations and relocating 20 optical centers to freestanding locations.

"We have had to make some very tough choices, but we are confident
that by operating a smaller and more focused store footprint, we will be able to build a stronger Shopko," said Shopko CEO Russ Steinhorst.

Information is not yet available whether store locations in Freeport, Belvidere or Beloit are affected by the closures.

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(AP) -- McKesson Corp., pharmaceutical drug supplier to Shopko, says it supplied Shopko with $67 million in drugs since Nov. 11 but had not been paid since early December.

McKesson asked a judge for a restraining order this week to keep Shopko from selling the medications it has supplied. McKesson attorney Jeff Garfinkle said during a court hearing that Shopko is expected to file for bankruptcy protection Jan. 15.

Press-Gazette Media says Shopko attorney Stephen Hackney says a restraining order would require the retailer to close its pharmacies and would harm patients who need the medications.